Welcome to Contract Training

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2 Learning ObjectivesUpon completion of this course, learners will have the knowledge to:Understand contract roles within the SFS;Understand contracts in the SFS;Create a contract;Edit a contractEnter a contract amendment;Approve a contract;View contract information;Locate available reports; and,Locate additional training materials, job aids, and other useful process-related information.

4 Contract RolesPO Contract Processor– Enters contracts and amendments in the SFS. There is no agency level workflow in the SFS for managing contracts. For a contract/amendment requiring OSC approval, the PO contract processor saves the contract and changes the status to Pending OSC Approval.The PO contract processor can perform the following tasks in the SFS:Create a contract;Create a contract amendment;Change contract status to Pending OSC Approval;View contract information;View non-confidential vendor information; andLook up vendor by TIN.The PO Reports role provides the ability to access and print formatted Requisition, Contracts, and Purchasing reports.

6 Understanding ContractsIn the SFS, creating a contract/amendment is a two-step process:A contract/amendment is created in the SFS.A purchase order is created in the SFS to associate to the contract and encumber the funds.Step-by-step instructions for creating a contract/amendment is further detailed in the “Create a Contract” section of this presentation.In the first step, the agency must create the contract/amendment transaction in the SFS.In the second step, the agency must create a purchase order transaction in the SFS to associate the PO to the contract/amendment and encumber the funds. BOC, as part of its audit, determines if the intended encumbrance amount complies with OSC encumbrance policy.

7 Understanding ContractsFor contracts/amendments that require OSC approval, the Bureau of Contracts (BOC) changes the contract/amendment transaction status to Requested PO. A PO can then be created by the agency to associate the contract/amendment and encumber the funds.Contracts/amendments requiring OSC approval are not approved at the contract level in the SFS, but rather at the PO level.There is no agency level workflow in the SFS for managing contracts.Contracts/amendments created in the SFS do not have a financial impact. This is because the encumbrance is done on the PO (referred to as PO releases).

8 Understanding ContractsWhen a contract/amendment transaction does not require OSC audit and approval, the following steps are taken:The agency creates the contract/amendment transaction in the SFS;The agency selects the appropriate Audit Type for the transaction and submits the transaction;The agency updates the status to Requested PO; and,The agency submits the PO.

10 Understanding ContractsThe second component of the contract in the SFS provides for contract order options. Use of this section is covered in the “Create a Contract” section of this presentation.

11 SFS Integration PointsThe flowchart below represents a high-level view of how the SFS Purchasing (PO) module integrates with other SFS modules. Contracts are created within the Purchasing module.

12 SFS Contract Terms and ConceptsThe table below lists key concepts of the Statewide Financial System related to contracts.Term/ConceptDefinitionProcurement ContractDocument used to establish an agreement with a vendor for the purchase of goods and/or services.Audit TypeReplaces the batch type as the value that determines if a transaction must be routed to OSC for approval.AmendmentDocument used to modify the terms, conditions, and/or contract amounts related to a formal contract agreement between a vendor and the state entity.Amendment Sequence NumberUniquely identifies each transaction (amendment) against the original contract (sequence 000). The sequence number is required when creating a PO to encumber funds against a contract.

14 Contract Types – Process in the SFSNew York State Master ContractA master contract, previously referred to as a Centralized Contract, is created by the Office of General Services (OGS).Once OGS master contracts are approved and posted on the OGS website, all eligible entities can access them.Agencies create a PO in the SFS against a master contract using the agency’s Business Unit and entering the master contract ID in the appropriate field of the PO transaction.

15 Contract Types – Process in the SFSRevenue ContractsA revenue contract is first submitted as a procurement contract in the SFS. OSC will only approve revenue contracts when they are submitted as a procurement contract in the SFS.Entering a customer contract in the SFS allows the tracking of receipts related to a bill. Revenue receipts can have the procurement contract ID included, so a customer contract is not required for this. For creating and activating a customer contract refer to Job Aid JAA-CCThe contract type determines if the contract requires BOC approval.When a revenue contract is amended, a new transaction is created with a new contract number.

18 Creating a ContractOn the Contract Entry page, a Contract ID must be entered. The contract ID naming convention consists of a five-character valid Business Unit (BU), a one-to-ten alpha numeric contract ID that includes the contract prefix, and a seven-character valid department ID.

19 Creating a Contract The SetID field is always SHARE. Do not change.The contract status field displays where the contract is in the contract lifecycle.

21 Creating a ContractComplete the Contract Order Options section as follows:Uncheck the Allow Multi Currency PO option;Check Corporate Contract if the contract will be used by multiple business units. Uncheck if the contract is specific to only the agency’s BU;Check the Allow Open Item Reference Option; and,Check the Price can be Changed on Order option. If this box remains unchecked, the contract can only be changed by quantity and not amount.

22 Creating a ContractThe PO Defaults page must be used to validate the business unit (BU) for the contract by clicking the PO Defaults. After validation, click OK to return to the main page and then click Save.For a contract with an audit type selected that does not require OSC approval, the SFS will automatically change the Status to Requested PO. When the status is Requested PO, a purchase order can be entered and associated to the Contract.

23 Creating a ContractIf the contract/amendment requires OSC approval, be certain to change the status to Pending OSC Approval and save again. No edits can be made once the status is changed.For contracts/amendments requiring OSC approval, it is also necessary to generate a Single Transaction Summary (STS) report. This form must be submitted to OSC with the contract agreement and required procurement record documentation.

25 Single Transaction Summary (STS)For transactions which require that funds be encumbered, the agency indicates on the bottom of the STS the intended encumbrance amount.The Guide to Financial Operations, Chapter 11.4.B, provides directions on how to complete this form:The agency submits the procurement documents (hard copy) to the OSC Bureau of Contracts (BOC), accompanied by the Single Transaction Summary (STS) report.Navigation to generate the STS in the SFS:Navigate to Purchasing > Procurement Contracts > Amendments;Enter the search criteria information and click the Search button;

26 Single Transaction Summary (STS)Under Details there is a link at the right entitled Generate Summary Report – this will produce the STS.

28 Learning Exercise Create a Contract 30minYou have been asked to create a contract.The trainer will walk learners through steps to access the Training Environment.Create a contract now.30minNote:Please refer to your exercise sheet handouts which contain the data you need to complete this activity.The job aid on the SFS website can be used to assist you.

30 Editing a ContractA contract/amendment cannot be edited once the Status has been changed to Pending OSC Approval.Navigation to edit a contract in SFS Financials:Purchasing > Procurement Contracts > Add/Update Contracts > Select the Find a New Value tabEnter the search criteria and click Search.The contract can now be edited.Note for Dolores to remember to decide: We may need to add how to add a master contract to a PO slide (review prior slide on Master Contract) (the atlas session presentation might have some slides that can be reused).

32 Amending a ContractAn amendment cannot be created against a contract in the SFS until a PO associated to the original contract is approved.To amend a contract in SFS Financials navigate to :Purchasing > Procurement Contracts > Amendments > Add/Update Contracts > Select the Add a New Value tab

33 Amending a ContractEnter the Contract ID for the contract to be amended or use the look up button.The sequence number will automatically update with the next available number. This sequence number will be needed to create a PO and encumber funds against the contract.Only edit/change the fields that need to be modified pursuant to the contract amendment.